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<p>We examine how changes in the real value of Supplemental Nutrition Assistance Program (SNAP) benefits affect labor supply among SNAP-eligible working-age adults. Using data from the Medical Expenditure Panel Survey linked to the USDA’s Quarterly Food-at-Home Price Database, we measure the real value of SNAP benefits as the ratio of the maximum allotment to local food prices. Real SNAP benefits vary substantially over time and across regions due to the variability of federally mandated benefit levels and regional food prices. We find that higher real SNAP benefit levels are associated with increased labor force participation and work hours, particularly among single women. A 10% increase in real SNAP benefits—approximately $41 per month (in 2013 dollars) in the maximum allotment for a four-person household—is associated with a 3.7% point increase in the probability of employment among married women and a 5.2% point increase among single women. For all SNAP-eligible individuals, the labor force participation elasticity with respect to real SNAP benefits is 0.83, which is comparable to estimates from the Earned Income Tax Credit literature. Higher real benefits also increase the likelihood that women transition from part-time to full-time work. Finally, we find that higher real SNAP benefits increase the use of formal childcare among eligible households, which is consistent with the poverty trap mechanism. This mechanism suggests that enhanced ability to pay for childcare and other job-related expenses supports greater labor supply and helps low-income households escape a poverty trap.</p>

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Work Incentives and In-Kind Transfers: Evidence from SNAP

  • 期刊论文

  • 发表日期：

    2026年6月22日

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  • Bita Fayaz Farkhad,
  • Chad D. Meyerhoefer

摘要

We examine how changes in the real value of Supplemental Nutrition Assistance Program (SNAP) benefits affect labor supply among SNAP-eligible working-age adults. Using data from the Medical Expenditure Panel Survey linked to the USDA’s Quarterly Food-at-Home Price Database, we measure the real value of SNAP benefits as the ratio of the maximum allotment to local food prices. Real SNAP benefits vary substantially over time and across regions due to the variability of federally mandated benefit levels and regional food prices. We find that higher real SNAP benefit levels are associated with increased labor force participation and work hours, particularly among single women. A 10% increase in real SNAP benefits—approximately $41 per month (in 2013 dollars) in the maximum allotment for a four-person household—is associated with a 3.7% point increase in the probability of employment among married women and a 5.2% point increase among single women. For all SNAP-eligible individuals, the labor force participation elasticity with respect to real SNAP benefits is 0.83, which is comparable to estimates from the Earned Income Tax Credit literature. Higher real benefits also increase the likelihood that women transition from part-time to full-time work. Finally, we find that higher real SNAP benefits increase the use of formal childcare among eligible households, which is consistent with the poverty trap mechanism. This mechanism suggests that enhanced ability to pay for childcare and other job-related expenses supports greater labor supply and helps low-income households escape a poverty trap.